Institutions are buying Ethereum for yield and utility, signaling a shift as ETH becomes a core treasury asset like cash or gold.
Ethereum ETFs saw stronger inflows than Bitcoin, with iShares and Fidelity leading as demand grows faster than supply can keep up.
ETH's dominance in tokenized assets and expected staking ETF approval highlight its growing role as financial infrastructure
Ethereum is steadily emerging as the favored asset among institutions, even as Bitcoin continues to dominate headlines. According to ConsenSys CEO and Ethereum co-founder Joe Lubin, ETH is no longer just a speculative asset. More companies now treat it as a working treasury tool, similar to cash or gold. With ETFs posting strong inflows, staking potential on the horizon, and ETH leading real-world asset tokenization, demand is rising faster than supply can match.
ETH's Role Grows in Corporate Treasuries
Joe Lubin believes Ethereum’s financial flexibility gives it an edge. Unlike Bitcoin, ETH offers built-in staking rewards and supports smart contracts. This gives businesses new ways to earn yield, manage risk, and deploy capital programmatically.
He emphasizes that ETH is becoming more than a passive asset. Companies use it for payments, DeFi exposure, and infrastructure support. Bit Digital, for instance, sold 280 BTC and bought over 100,000 ETH. SharpLink Gaming recently acquired 7,689 ETH and plans a $1 billion stock offering to fund more ETH purchases.
ETF Inflows Signal Institutional Alignment
BlackRock’s iShares Ethereum Trust added 20,955 ETH worth $53 million last week. It now holds 1.5% of Ethereum’s total circulating supply. Fidelity, Bitwise, and Invesco also boosted their ETH holdings. In contrast, Grayscale’s Ethereum Trust lost 7,667 ETH during the same period.
Ethereum ETFs added 45,980 ETH last week, easily outperforming Bitcoin ETFs, which gained just 7,726 BTC. iShares led with 29,355 ETH in inflows, followed by Fidelity’s 24,125 ETH. Moreover, Ethereum dominates tokenized real-world assets (RWAs), controlling $7 billion or 59% of the global total. This dominance strengthens its long-term outlook.
ETH Demand Outpaces Supply Growth
Hence, institutions now view Ethereum as more than a store of value. They treat it as programmable financial infrastructure. With staking ETF approvals likely and tokenization surging, ETH demand continues to climb. Consequently, the market could witness a strong move as supply tightens. Ethereum may no longer stay in Bitcoin’s shadow.
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